1. Development of fallow land for energy and landscape crops

After entering the WTO, Taiwan has re-structured its rice production scheme. Since 2001, the COA is implementing the "adjustment program on paddy and upland utilization," and has promoted the farmland to rotate with the crops that are unique in the area or to render the farmland to fallow. The fallowed farmland is usually planted with green manures such as sun hemp ( Crotalaria juncea) and soybean to maintain its soil fertility. To comply with the policy that is articulated in the New Agriculture Movement, the COA encouraged the farmers with fallowed paddy field, upland, or sugarcane field to cultivate energy crops and landscape plants to increase the utilization and benefit of fallowed farmland.

Under this program, the fallowed land in Yunlin, Chiayi and Tainan counties, 1,721 hectares in total, has been employed to cultivate two energy crops, soybean and sunflower. Biodiesel from these crops was supplied to the Bureau of Energy of the Ministry of Economic Affairs to be used under its energy crops and green buses program.

Besides, the COA has cooperated with the local governments to promote the cultivation of landscape plants as part of the drive to develop recreational agriculture. As an incentive to cultivate landscape plants in the fallowed farmland, one hectare per crop season is paid same amount as the payment for decoupling paddy rice at NT$45,000. During 2006, Taiwan’s 16 cities and counties have 2,340 hectares of fallowed farmland that were cultivated with ornamental plants such as cosmos, yellow cosmos, sunflower, zinnia, and celosia.

Implementation of the aforementioned two programs was not only to popularize energy and landscape crop cultivation, but also to beautify rural areas and to highlight their value as parallel to food crop production source of employment. Moreover, they helped to serve as a platform for addressing issues related to energy-saving, renewable sources of energy, and environment protection; and attracting people to be closer to the nature.

2. Direct ecological payment for fallowed farmland

The COA continues implementing the "adjustment program on paddy and upland utilization" to reduce the scale of production and direct payment for rice, grain crops and sugarcane. This has led to a reduction of rice cultivation to 263,194 hectares (which still meets the yearly production target), grain crop cultivation to 7,207 hectares, and leased sugarcane cultivation to 2,292 hectares. The significant result has helped to achieve the target of reducing agricultural subsidies. On the fallowed farmland, the COA is assisting the farmers to plant specialty crops that fit in regional environment features and cultural context. The strategy is being done in compliance with the policy-specific criteria set in the WTO Green Box.

Currently, individual farms that are rotated with specialty crops are paid at NT$22,000 per hectare per crop season, and group farms paid at NT$26,000 per hectare per crop season. The fallowed farmland that is planted with green manure crops or landscape plants is paid at NT$45,000 per hectare per crop season, with energy crops paid at NT$45,000 per hectare per crop season plus NT$15,000 of material and operation costs, and with plowing NT$34,000 per hectare per crop season.

For 2006, the total area for the first and second crop seasons that had been rotated or fallowed was 265,300 hectares, and the total amount for direct payment was NT$10.83 billion. The above program, with limited resources, has ensured the environmental protection, restoration of soil fertility, regional development, and the farmers’ benefits. Nevertheless, to augment the direct ecological payment measure and improve the farmland utilization, the COA is revising the current rotation-fallow policy to focus on the plantation of energy crops and landscape plants; the cultivation of risk-free crops with marketing potential; and the enforcement of farmland policy that has been set.

3. Agricultural insurance

A national pig insurance program is being implemented for control of sick and dead pigs, and to secure compensation in the event of the death of animals. For 2006, about 3.15 million pigs, that is one-third of total pigs in the country, have been insured. In this insurance scheme, the pig farmers and government agencies cover 30% and 70% of the premium, respectively, whereas Taiwan Farmers' Associations and its affiliated county associations serve as underwriting and re-insurance agencies. In this program, county animal disease control centers, pig production organizations, consolidation centers, and rendering plants are responsible for extension, monitoring, and certification. After the aforementioned has been implemented, the cases of illegal selling of pork from dead pigs were significantly reduced, but the source supply for the rendering plants increased. These significant outcomes clearly indicate that the strict control of pig production, and prevention of illegal use of dead pigs have effectively ensured the healthy pig production, and hygiene and safety of pork. It is planned to expand the above program as a comprehensive program. It is expected that there will be a total recycling of dead pigs in the rendering plants within three years.

Moreover, the COA is moving forward a comprehensive insurance coverage to include all pigs and dairy cows. Nation-wide training workshops have also been conducted to educate on the proper treatment and the re-use system of dead pigs, the feeding management, and the disease control. In addition, the COA has organized the service competition as an incentive for the local governments and farmers' associations to implement livestock insurance. The COA is also reforming the current fishing vessel insurance system. The government plans to insure all the country's fishing vessels, and to take the whole responsibility of premium.